Kanta Food Product Vs Union of India And Ors (Delhi High Court)
The Delhi High Court, in the matter of M/s Kanta Food Product v. Union of India & Ors., addressed a petition filed under Articles 226 and 227 of the Constitution of India challenging the continued provisional attachment of the petitioner’s bank account by the Directorate General of Goods and Services Tax Intelligence (DGGI), Gurugram Zonal Unit. The core issue before the Court was the permissible duration of a provisional attachment order under the Central Goods and Service Tax Act, 2017 (CGST Act).
Background of the Dispute
M/s Kanta Food Product, a manufacturer of food products, was the subject of proceedings initiated by the DGGI. Following the issuance of a Show Cause Notice (SCN) on February 2, 2024, the DGGI provisionally attached the petitioner’s HDFC Bank account (Account No. 50200001632681) via an order designated as DRC 22, dated March 7, 2024.
The petitioner subsequently requested the defreezing of the bank account. This request was formally rejected by an order dated July 15, 2024, issued by the DGGI. The DGGI’s rejection order explicitly stated that it was “necessary to keep the bank account… provisionally attached for protecting the interest of Government revenue” and formally rejected the request to remove the provisional attachment order.
